A Regional Restaurant Chain Wants to Place Ads on a Local

question 121

Multiple Choice

A regional restaurant chain wants to place ads on a local newspaper's website. The marketing team at the restaurant chain knows from experience that about five percent of the people who see its ads on a newspaper's website will click on the ad to get more information or sign up for a promotion. Because the marketing team wants to keep the price of running the ads low, the restaurant chain will likely opt for ________ pricing.

• A) cost-per-impression
• B) cost-per-customer
• C) cost-per-order
• D) cost-per-click
• E) cost-per-conversion

---

Definitions:

Profit-maximizing

The process or strategy of adjusting production and operation to generate the highest possible profit.

Many Buyers

A market condition characterized by the presence of numerous consumers or purchasers for goods and services.

Many Sellers

A characteristic of competitive markets where a large number of sellers offer similar or identical products, preventing any single seller from influencing market prices.

Distinguish

To recognize or treat someone or something as different from others.